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US tariff hike hits $10 billion Indian jewellery exports, 5 million jobs at risk
The gems and jewellery sector contributes around 30% of India’s exports to the US, valued at $10 billion out of the $190 billion bilateral trade
Industry representatives warned that the tariff hike will significantly raise costs, making Indian products less competitive in the US market and potentially stalling sales.
India's gems and jewellery sector is bracing for a major setback after the US imposed a 50% tariff on Indian exports, threatening billions of dollars in trade and millions of livelihoods.
The latest 50% hike, follows an earlier 25% tariff that the industry had already deemed “unworkable.” According to a report by CNBC TV-18, nearly $38.2 billion worth of Indian exports to the US now stand impacted.
The gems and jewellery sector contributes around 30% of India’s exports to the US, valued at $10 billion out of the $190 billion bilateral trade. Industry representatives warned that the tariff hike will significantly raise costs, making Indian products less competitive in the US market and potentially stalling sales.
Impact on diamond industry
India, the world’s largest diamond cutting and polishing hub—where 9 out of 10 diamonds are processed—is expected to take a severe hit. The lab-grown diamond industry will also be affected.
Mumbai’s SEEPZ, home to nearly 200 export units employing around 50,000 workers, faces particular risk. Experts caution that if the issue is not resolved in the next three to four months, investments and operations could shift abroad.
Industry Response
The sector has urged the Indian government to step in urgently and reopen diplomatic talks with Washington to secure tariff relief, reported CNBC TV-18. Demands include special relief schemes for exporters and smaller units most exposed to the tariff shock.
Some jewellery manufacturers are also exploring shifting production to lower-tariff destinations such as Dubai and Mexico.
An estimated 5 million jobs across Gujarat, Maharashtra, and Uttar Pradesh are now at stake, according to industry experts.
Earlier this month, US President Donald Trump announced a steep 25% additional tariff on Indian goods, as per reports. The decision, which comes as a "penalty" for India's continued imports of Russian crude oil, brings the total tariff to a staggering 50% - far exceeding duties imposed on other nations like China, Vietnam, and Bangladesh.
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